Problem CABC Co. acquired a new machine. Details of the acquisition are as follows:Cash paid for machine including VAT of P60,000Royalty payment based on units producedCost of transporting machineCost of installation by expert fitterLabor of testing machineMaterials used and damaged as a result of testing the machine560,00019,00015,00040,00020,00010,000Repair cost of new machine damaged in the process of installation12,000Cost of training for personnel who will use the machine25,000Cost of safety rails and platforms surrounding machine50,00070,000Cost of water device to keep machine coolCost of adjustment to machine to make it operate more efficientlyEstimated dismantling cost to be incurred as required by contractCost of removing old machineLoss on premature retirement – old machineGratuity paid to operator of old machine, who was laid off75,00067,00010,000120,00020,000Required: Compute for the cost of the new machine.

SOLUTION- COST OF ASSET REPRESENTS THE MONETARY COSTS INVOLVED IN ACQUIRING , INSTALLING AND…

Problem C ABC Co. acquired a new machine. Details of the acquisition are as follows: Cash paid for machine including VAT of P60,000 Royalty payment based on units produced Cost of transporting machine Cost of installation by expert fitter Labor of testing machine Materials used and damaged as a result of testing the machine Repair cost of new machine damaged in the process of installation Cost of training for personnel who will use the machine Cost of safety rails and platforms surrounding machine 560,000 19,000 15,000 40,000 20,000 10,000 12,000 25,000 50,000 Cost of water device to keep machine cool Cost of adjustment to machine to make it operate more efficiently Estimated dismantling cost to be incurred as required by contract Cost of removing old machine Loss on premature retirement- old machine |Gratuity paid to operator of old machine, who was laid off 70,000 75,000 67,000 10,000 120,000 20,000 Required: Compute for the cost of the new machine.

Problem C ABC Co. acquired a new machine. Details of the acquisition are as follows: Cash paid for machine including VAT of P60,000 Royalty payment based on units produced Cost of transporting machine Cost of installation by expert fitter Labor of testing machine Materials used and damaged as a result of testing the machine Repair cost of new machine damaged in the process of installation Cost of training for personnel who will use the machine Cost of safety rails and platforms surrounding machine 560,000 19,000 15,000 40,000 20,000 10,000 12,000 25,000 50,000 Cost of water device to keep machine cool Cost of adjustment to machine to make it operate more efficiently Estimated dismantling cost to be incurred as required by contract Cost of removing old machine Loss on premature retirement- old machine |Gratuity paid to operator of old machine, who was laid off 70,000 75,000 67,000 10,000 120,000 20,000 Required: Compute for the cost of the new machine.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject: acounting